Secondary bond market yields see-saw

Friday, 6 December 2024 00:18 - - {{hitsCtrl.values.hits}}

Rupee appreciates marginally

By WealthTrust Securities

The secondary bond market yesterday initially saw 2027 tenors continue to experience strong demand, with the buying momentum subsequently spilling over to the rest of the yield curve. As such, yields declined on the back of increased trading activity and transaction volumes. However, at the tail end of the day, profit-taking pressure reversed some gains and pushed yields back up. This see-saw movement was witnessed primarily on 15.10.27 and 01.05.28 maturities.

Accordingly, the 01.05.27 and 15.12.27 maturities were seen trading down the range of 10.10% to 9.95% and 10.22%-10.10% respectively while the yield on the popular and liquid 15.02.28 and 15.03.28 maturities were traded from a high of 10.45% to a low of 10.40%%. In addition, the maturities of 15.12.26, 15.09.29 and 01.10.32 traded at levels of 9.43%, 10.80% and 11.47% to 11.52% respectively. The yield on the 15.10.27 and 01.05.28 maturities initially declined to an intraday low of 10.07% and 10.45% respectively before climbing to an intraday high of 10.15% and 10.60%.

The total secondary market Treasury bond/bill transacted volume for 5 December was

Rs. 70.35 billion.In money markets, the weighted average rates on overnight call money and Repo stood at 8.17% and 8.32% respectively. The DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight repo auction for

Rs. 24.75 billion at a weighted average rate of 8.08%.

The net liquidity surplus stood at Rs. 221.89 billion yesterday. Rs 0.14 billion was withdrawn from the Central Banks SLFR (Standing Lending Facility Rate) of 8.50%, while an amount of Rs. 246.78 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 7.50%.

Forex market

In the Forex market, the USD/LKR rate on spot contracts closed the day appreciating marginally to

Rs. 290.30/290.40 as against 290.40/290.50 the previous day.

The total USD/LKR traded volume for 4 December was

$ 71.89 million.

(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)